S&P lowers McClatchy

Standard & Poor's said it lowered its corporate credit and issue-level ratings on the McClatchy Co. as follows:

• The corporate credit rating to CC from CCC+ (outlook negative);

• The secured debt to CC from CCC+; and

• The existing senior unsecured debt issued by Knight Ridder Inc. down to C from CCC-.

Also, the agency said it assigned McClatchy's proposed up to $175 million of 15.75% senior notes due 2014 an issue-level rating of CCC, following its assessment of the company's post-exchange capital structure.

S&P said it also assigned this debt a recovery rating of 6, noting that the rating actions follow McClatchy's announcement that it is offering to exchange up to $60 million in cash and up to $175 million in new 15.75% senior notes due 2014 for a portion of all of the company's outstanding senior unsecured note issues in the company's capital structure.

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